The question day 3: What is the most difficult issue facing the solar industry?

It's been a year of both continued expansion and mounting challenges for the global solar industry. RenewableEnergyWorld asked solar industry executives to share their thoughts and insights on one burning question:

What has proven to be the most difficult issue facing the solar industry during the past year and what are some key strategies to ensure long-term growth?
Responses will be updated daily, and we encourage you to lend your own voice to the discussion in the comments below.

Wendy Arienzo, CEO, ArrayPower

The biggest issue facing the solar industry is steady demand. 2012 is the year of global uncertainties, and if there is one thing that is bad for business, it is uncertainty.
European governments, sensitive to a changing political climate as well as looming economic austerity measures, are responding with reductions in and restructuring of feed-in tariff programs with a net effect of cooling demand. Germany has been the mainstay of solar demand but has modified its feed-in tariff to focus on smaller installations and residences. Italy opted to continue incentives in its Conto Energia 5, but through an extremely complex program. The softening of the European market combined with an uncertain future of incentive programs results in serious doubt that Europe can continue as the bastion of solar.
China presents the fastest growing global market — however, this is largely a China for China market stimulated by the government to boost outtake for Chinese module production. But for how long?
On the home front, the U.S. continues to suffer from a lack of consistent energy strategy and an ambivalent attitude toward renewable incentives. The 1603 Treasury program failed to be extended and, if that was not enough, the Department of Commerce supported tariffs on Chinese cells — both serving to quell demand. We cannot minimize the destabilizing effects of an election year, the lack of an articulated energy policy by either party and increasing anti-renewable energy lobbyism.
The time has come for the U.S. to stand behind Secretary Chu’s energy vision and drive consistent actions — ranging from R&D funding to financial tools — to support the solar industry. Reaffirming commitment to state RPS goals and deploying tools to streamline permitting and financing processes will go a long way toward driving confidence and ultimately, industry growth.



Jayesh Goyal, Global Vice President of Sales, AREVA Solar

When viewing the overall industry and examining its challenges and opportunities, I think we need to move beyond a discussion of just silicon prices and expand our focus to other factors that are increasingly impacting the sales decisions of utilities and other energy customers. Due to global economic challenges this past year some concentrated solar power (CSP) planned programs were delayed.
To ensure long-term growth of the industry, we must, among other factors, continue to raise awareness for and diversify our offerings with proven and dispatchable CSP and emphasize localization in our supply chains.
As electric utilities add more renewable energy to their portfolios due to environmental standards and sustainability goals, they are faced with the challenge of delivering clean power regardless of weather conditions or time of day. Advancements in CSP solutions, such as easy integration with fossil fuels and storage options, allow the industry to overcome the intermittent nature of solar and address grid stability concerns.
We must also demonstrate a global execution capability while addressing the need for localization. Understanding the regulatory and market differences of each country and then adapting our expertise for best-in-class service delivery is vital to creating a vibrant international business. And, since many CSP technologies primarily use standard commodity materials like glass and steel, they can create local jobs and boost local economies. We see this in countries like India where, for example, a 250-MW CSP project currently under construction is becoming a source of local jobs and manufacturing.

Over the past decade, the solar industry’s growth has been phenomenal, but to ensure long-term growth, we need all technology segments to succeed, and that includes greater awareness of its benefits and wider CSP adoption globally.
Jayesh Goyal brings more than 17 years of technology leadership and business development experience to AREVA Solar, having executed large, complex energy projects on a worldwide basis. He is responsible for driving global sales and marketing for AREVA’s CLFR solar steam generators for power generation and industrial process steam applications. 


Tucker Ruberti, Director of Segment Marketing, Solar Energy, Advanced Energy 

Contrary to what many people hear in the news, the solar industry is quietly riding a hot trend: record low prices combined with incredible growth in a variety of markets. With that in mind, perhaps the number one challenge for the industry overall will be to help fight the misconceptions that still linger around solar and better communicate its successes.
Many inside and outside the solar industry believe it is doomed due to the unfortunate failure of a handful of solar companies. While these companies did teach us some tough lessons, the industry experienced its best quarters on record, creating jobs and driving megawatts of projects.
Solar is doing well for a variety of reasons.  First, the cost of PV modules is falling rapidly, which has been bad news for the high cost and least efficient producers, but great news for the rest of the industry.  Lower module costs are bringing more buyers onto the scene.
Another important trend is that the secure returns of PV projects have brought in a new wave of money and new financial instruments.  The fact that Warren Buffet’s company has come into PV and is securitizing projects is possibly the most important news for the long-term growth of the industry. Costs will continue to be squeezed out across the supply chain in order to achieve the best possible LCOE for project financiers and end users. This virtuous cycle will open new markets, which will drive greater volumes and even lower costs.
With all of that said, the general public, even industry insiders, could stand for a little bit of education on these promising trends. Solar is here to stay for a variety of residential, commercial, government and utility customers.

Tucker Ruberti has worked for Advanced Energy in Bend, OR since 2007 and is currently director of strategic product marketing. He has worked in the energy technology space since 1993 for a broad range of companies including Westinghouse, General Electric, the New York State Energy Research and Development Authority (NYSERDA) and IdaTech.

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